Global markets perceive that economic green-shoots may be growing on stony ground as the rally in the Dow ran out of steam last week. Inflation figures published in the US suggested that core inflation may be higher than previously expected, contributed to the down week for the Dow and a minor strengthening of the Greenback.
Despite the dollar strengthening, gold benefited from the outflows from both stocks and commodities. Gold traded higher by approximately 1% on the week in all the major currencies, as concerns about the recession in Europe deepen.
Gold outshone other precious metals with silver trading sideways for the week, again in all currencies. Currently silver is trading at $14.00 per ounce. Platinum and palladium followed oil lower and are currently trading at $1,110 and $225 respectively, while oil is trading at $57.00 a barrel.
All eyes this week will be focused this week on UK inflation figures for April, that are expected to show a continued fall, and retail sales figures where the expectation is for a monthly rise. Meanwhile in the US, Housing Indicators will be closely examined for any sign of the much hyped “green shoots”!
Technically gold’s uptrend will run in to resistance at $945/950, while a close above this could open the way for a test of $965/970, failure would confirm that the $945 to $870 range that we have seen for the last two months is holding.